Released today (March 18), the IFPI (International Federation of the Phonographic Industry) Digital Music Report shows overall digital revenues grew 4.3 percent in 2013.
Despite positive trends in most markets, particularly Europe, overall global music trade revenues fell 3.9 percent to $15.0 billion last year. The result was heavily influenced by a 16.7 percent fall in Japan, which accounts for more than a fifth of global revenues.
The digital market has continued to diversify with revenues from subscription services, such as Deezer and Spotify, growing by 51.3 percent, passing the $1 billion mark for the first time. Global revenues from subscription and ad-supported streams now account for 27 percent of digital revenues, up from 14 percent in 2011. It is estimated that more than 28 million people worldwide pay for a music subscription, up from 20 million in 2012 and eight million in 2010.
Digital downloads remain a key revenue stream, accounting for a substantial two-thirds of digital revenues (67 percent).
Physical sales account for more than half (51.4 percent) of all global revenues.
Performance rights income to record companies crossed the $1 billion threshold for the first time in 2013 to hit $1.1 billion, accounting for 7.4 percent of total record industry revenue.
Hunter Hayes—On page 27, the report also examines Warner Music Nashville’s YouTube marketing campaign for the Hunter Hayes/Jason Mraz song “Everybody’s Got Somebody But Me.” Jeremy Holley, Sr. VP, consumer and interactive marketing, Warner Music Nashville, explains, “There is a misconception that Country music fans are not digitally savvy, but that’s just not true.”
See the full report.